Providence, RI · Member since 2018 · 29 posts · 409 votes
7y
Having just recently bought my first property, I know for myself what was holding me back was the fear that I would overpay, especially in this type of a market. I would get analysis paralysis and basically talk myself out of every property I looked at.
Chicago, IL · Member since 2019 · 10 posts · 3 votes
7y
I am totally new to all of this. I have some money available, but havent decided how much cash I am willing to invest in my first property - given that I have no experience. Ideally I want a triplex / 3 flat, but I would like to learn, network and investigate more. I will be honest. I am scared out of my mind - what if I make the wrong decision? I am really happy that I found BP and I am reading as much as I can.
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
7y
Originally posted by @Account Closed:
I am totally new to all of this. I have some money available, but havent decided how much cash I am willing to invest in my first property - given that I have no experience. Ideally I want a triplex / 3 flat, but I would like to learn, network and investigate more. I will be honest. I am scared out of my mind - what if I make the wrong decision? I am really happy that I found BP and I am reading as much as I can.
Welcome. House hacking is definitely the way to go. Join your local real estate group to network. Keep reading and learning.
@Frank Patalano fear of losing my money. Currently have over $300k in equity in my current residence.
My suggestion is to start small. Buy up to a 3-unit. Don't settle for something unless it cash flows. If it's not going to make you money then don't buy it. Do not plan for any appreciation. If it does appreciate that's a bonus.
Realtor · San Diego, CA · Member since 2019 · 22 posts · 21 votes
7y
@Frank Patalano I am still in the beginning stages of researching and figuring out how I want to really go about doing a rental. Additionally, I live in San Diego and am considering other markets (specifically the Hampton Roads area of Virginia where I’m from and feel more comfortable investing than another state). I don’t think I’m in an analysis paralysis situation yet though, more just getting my ducks in a row especially before buying a property on the other side of the country.
Specialist · Saint Augustine, FL · Member since 2016 · 10 posts · 4 votes
7y
@Frank Patalano I just posted this morning that I want to get into house hacking and MF but right now it’s the money getting into the first one that has me from starting. I’ve talked to numerous local people and they tell me I need 20% down.
@Frank Patalano I am still in the beginning stages of researching and figuring out how I want to really go about doing a rental. Additionally, I live in San Diego and am considering other markets (specifically the Hampton Roads area of Virginia where I’m from and feel more comfortable investing than another state). I don’t think I’m in an analysis paralysis situation yet though, more just getting my ducks in a row especially before buying a property on the other side of the country.
If I were you and this was my first investment I would give yourself a one-month time frame to learn as much about the area online as I could. Then I would make a three or four day weekend to go out there. I would meet up with one or two agents, one or two property managers, and get a little feel for the city. Besides that keep learning and networking online.
@Frank Patalano I just posted this morning that I want to get into house hacking and MF but right now it’s the money getting into the first one that has me from starting. I’ve talked to numerous local people and they tell me I need 20% down.
If you are going to live in the property and it's 4 units or less then you can FHA for as low as 3.5% down. If you have mortgage lenders telling you that, meet with other lenders.
Realtor · Phoenix, AZ · Member since 2019 · 2 posts · 1 vote
7y
Hey frank. I have been studying real estate for about two years now. I own shares ina a reit and have done some deals for clients since getting my license. I am trying to make sure my personal finances are good to go and I have enough savings before I pull the trigger on a property. Also trying to figure out what kind of business model I want to start with. Single family, apartments, flip, hold etc. yo be honest I am a little terrified that I will overleverage. Or make a bad purchasing decision. I have comped out a ton of properties at this point but haven’t seen any that meet the criteria/location in my area for a good deal. In my opinion. Maybe I am being too picky. Any thoughts would be appreciate. @Frank Patalano
Hey frank. I have been studying real estate for about two years now. I own shares ina a reit and have done some deals for clients since getting my license. I am trying to make sure my personal finances are good to go and I have enough savings before I pull the trigger on a property. Also trying to figure out what kind of business model I want to start with. Single family, apartments, flip, hold etc. yo be honest I am a little terrified that I will overleverage. Or make a bad purchasing decision. I have comped out a ton of properties at this point but haven’t seen any that meet the criteria/location in my area for a good deal. In my opinion. Maybe I am being too picky. Any thoughts would be appreciate. @Frank Patalano
The market hit so there are not many deals out there. Where are you looking? MLS only? Are there deals? Absolutely. But they are few and far between. I have one Guy buying rehabs in my market for under $100,000 which is crazy good in my eyes. Obviously there are other people doing it but he's doing something right. One option is to find a partner then you can shoot creative ideas off each other. Pick a plan for 6 months and then stick with it. Perhaps you are only going to go after probate's. If so do it.
@Frank Patalano I have one more year as a student and then I’ll be an engineer. I’m working an internship for the summer and I’ll save 97% of what I make according to some napkin projections. Not sure on the market I’ll move to yet because I would like to secure a job first, but once that’s locked in I’ll heavily research 2-4 unit places that I can get a 203k loan for and hack my living space. Past that, I plan on getting larger multifamilies, with family as partners.
At this point, I have the credit and down payment. I NEED to wait 2 years for proof to banks that I can pay mortgages, but I check off all other boxes. Just a matter of time! Would love to start during this next year, but I’m a bit too cautious for that at the moment.
@Frank Patalano I have one more year as a student and then I’ll be an engineer. I’m working an internship for the summer and I’ll save 97% of what I make according to some napkin projections. Not sure on the market I’ll move to yet because I would like to secure a job first, but once that’s locked in I’ll heavily research 2-4 unit places that I can get a 203k loan for and hack my living space. Past that, I plan on getting larger multifamilies, with family as partners.
At this point, I have the credit and down payment. I NEED to wait 2 years for proof to banks that I can pay mortgages, but I check off all other boxes. Just a matter of time! Would love to start during this next year, but I’m a bit too cautious for that at the moment.
If you want to invest now you could do a REIT. Besides that keep learning and networking.
Accountant · Atlanta, GA · Member since 2018 · 7 posts · 1 vote
7y
@Frank Patalano
Mainly fear and not having enough money.
I only have about 12k in cash so i decided to try wholesaling to get started in my real estate journey but im currently feeling overwhelmed. Im going to keep trying but the process in scary so far. I have found though, the mire i research, the more confident I become.
@Frank Patalano I was thinking of finding a 16+ units and have a property management company manage the property. The 16+ units gives me peace of mind if there is say 3-6 units vacant I'm still receiving cash flow from the occupied units. Of the $300k that I have in current equity I was thinking of doing a $200k down payment and holding the $100k for reserves (rehab, maintenance, other expenses, etc. needed for the property in the future).
@Frank Patalano I was thinking of finding a 16+ units and have a property management company manage the property. The 16+ units gives me peace of mind if there is say 3-6 units vacant I'm still receiving cash flow from the occupied units. Of the $300k that I have in current equity I was thinking of doing a $200k down payment and holding the $100k for reserves (rehab, maintenance, other expenses, etc. needed for the property in the future).
Sounds like a great idea. Just make sure that it cashflows.
Contractor · MA · Member since 2019 · 11 posts · 2 votes
7y
I can't say I'm being held back, yet I can narrow it down to a several things, not in any particular order.
Being able to make it to meet ups in my area. most are during my busy work week.
Finding a lender/realtor that understands the VA rehab/renovation construction loan
Time spent on keeping my contracting business going
Family obligations(family first), though they can't see the vision as I do.
My current obligation to the military. I can't always take on long projects. (I'm not big enough yet to hire the necessary staff) but have a plan in place to get there.
I would say money is a big factor, but there is always a way even without all the factors the gate keepers are looking for.
Not allowing myself to be distracted by other peoples shiny goals
If I can find a good/great accountability partner[s] who I can also push and inspire on this marathon/journey. No matter any of these factors, I won't allow myself to turn back now, my family needs me to succeed and leave a legacy of financial freedom.
I can't say I'm being held back, yet I can narrow it down to a several things, not in any particular order.
Being able to make it to meet ups in my area. most are during my busy work week.
Finding a lender/realtor that understands the VA rehab/renovation construction loan
Time spent on keeping my contracting business going
Family obligations(family first), though they can't see the vision as I do.
My current obligation to the military. I can't always take on long projects. (I'm not big enough yet to hire the necessary staff) but have a plan in place to get there.
I would say money is a big factor, but there is always a way even without all the factors the gate keepers are looking for.
Not allowing myself to be distracted by other peoples shiny goals
If I can find a good/great accountability partner[s] who I can also push and inspire on this marathon/journey. No matter any of these factors, I won't allow myself to turn back now, my family needs me to succeed and leave a legacy of financial freedom.
Where are you located in Mass.?
Finding accountability partners in a great idea. Perhaps you should set up your own real estate meetup at a time that you can make.
I only have about 12k in cash so i decided to try wholesaling to get started in my real estate journey but im currently feeling overwhelmed. Im going to keep trying but the process in scary so far. I have found though, the mire i research, the more confident I become.
"The more I research, the more confident I become." Perfect. Spend another month researching. Also do more networking if possible. Then take action and make offers. It's ok if they get turned down. You took action. Sometimes the best deals are the ones that you pass on.
I'm in Cambridge, MA. Definitely would not mind setting up a local meet up. Being a newbie, don't see myself with much to offer.
You are taking action by setting up a group. Most other newbies will not take action. You are providing a service. A networking event. Perhaps you can find an accountability partner there. If you plan a date that I can make perhaps I can stop in.
It's finding the deal. The wholesalers in my area eat up the profit margin for the BRRRR strategy with astronomical asking prices that they won't budge on.
It's finding the deal. The wholesalers in my area eat up the profit margin for the BRRRR strategy with astronomical asking prices that they won't budge on.
Where did you find these wholesalers? All good wholesalers leave plenty of meat on the bone. You got to keep networking to find them. If that doesn't work you may have to do your own marketing. Sometimes the best deals are the ones that you find yourself.
I'm in Cambridge, MA. Definitely would not mind setting up a local meet up. Being a newbie, I don't see myself with much to offer to a group other than space and time.